Best Buy founder may scrap buyout bid -WSJ

February 13, 2013|Reuters

Feb 13 (Reuters) - Best Buy Co Inc founder RichardSchulze may scrap a buyout bid for the company and instead lineup investors to take a minority position in the electronicsretailer, the Wall Street Journal reported on Wednesday.

Best Buy shares plunged sharply on the initial report,shedding more than 10 percent of their value, although theyregained some ground and closed just 2 percent lower.

The paper, citing sources familiar with the matter, saidSchulze had been unable to get enough support from banks tofinance a deal to take the company private.

Instead, it reported, he is in preliminary talks withinvestors to take a minority stake in the retailer that would beseparate from Schulze's own existing position of about 20percent.